Listen Labs drops $1.5B funding round for Salesforce talks

The tech venture ecosystem witnessed a rare move as Listen Labs, a market research startup leveraging voice AI for customer interviews, walked away from a signed term sheet for a $125 million Series C round. The financing, which was set to be led by Menlo Ventures at a $1.5 billion valuation, ultimately failed to close after the startup abruptly pulled out.

Industry sources indicate that the funding collapse stemmed from acquisition discussions with Salesforce. The CRM software giant has reportedly engaged in talks to acquire Listen Labs for roughly $2 billion, according to Business Insider. However, discussions remain fluid and have not yet reached a final, binding agreement.

Previously, Listen Labs secured a $69 million Series B in late January at a $500 million valuation, backed by Ribbit Capital, Sequoia, Conviction, and Pear VC. Competitor Simile recently announced a $200 million Series B at a $2 billion valuation led by Greenoaks, establishing a high benchmark that could allow Listen Labs to command an even higher valuation if the Salesforce talks fall through.

Stock photo for illustration only, not from the actual event

Founded in 2023 by Harvard master's graduates Florian Jüngermann and Alfred Wahlforss, Listen Labs automates survey creation and customer interviews via audio and video. The platform compiles conversations into comprehensive reports and PowerPoint presentations, significantly cutting down the weeks of time and high expenses associated with traditional human-led market research.